iPhone 14 Delay: When House Speaker Nancy Pelosi (D-Ca) visited Taiwan last week, the Communist Chinese government got antsy. China saw this as a violation of the United States’ fifty-year-long “One China” policy. According to the policy, the US government “recognises that all Chinese on both sides of the Taiwan Strait maintain that there is only one China and that Taiwan is part of China,” and the US “does not challenge this position.”
China believes the US violated its “One China” policy
While the US has a legal relationship with the PRC, it has a “unofficial” relationship with Taiwan, which China believes Pelosi’s visit made official. While Pelosi was in Taiwan, China sent 68 warplanes, warships, and drones to the Taiwan Strait and Japan. The People’s Republic of China suspended negotiations with the U.S.
This is the last detail Apple needs before the 2022 iPhone launch
The last thing Apple needs right now is for supplies destined for the iPhone 14 series assembly line to be rejected by customs and returned to Taiwan. “Created in Taiwan” on Chinese import documents or shipping cartons could delay or reject shipments. Furthermore, a fine of up to 4,000 (US$592) may be imposed.
But here’s the catch. Taiwan requires all exports to be labelled “Taiwan” or “Republic of China” That is exactly what Chinese customs will not want to see. Apple has warned its Taiwan-based suppliers to acquire some type of contingency options in order to avoid supply chain disruptions.
It reportedly instructed its supply chain to modify carton and type labels for shipments from Taiwan to China. Apple is dealing with chip shortages and supply chain concerns, so it must be diplomatic.